GDS (NASDAQ:GDS) Stock Jumps 8.2% - Time to Buy?

Key Points

• GDS shares jumped 8.2% to approximately $31.70 in mid-day trading, although volume was 24% below the average session level.
• Analyst sentiment remains cautiously positive: GDS has a consensus “Moderate Buy” rating and a $48.12 average price target, well above its recent trading price.
• The company reported quarterly revenue of $454.51 million and EPS of $0.52, while institutional investors and hedge funds collectively own 33.71% of its stock.

GDS Holdings (NASDAQ:GDS - Get Free Report)'s stock price rose 8.2% during mid-day trading on Tuesday. The company traded as high as $31.67 and last traded at $31.70. Approximately 1,570,394 shares were traded during trading, a decline of 24% from the average session volume of 2,061,165 shares. The stock had previously closed at $29.29.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on GDS. Weiss Ratings restated a "hold (c)" rating on shares of GDS in a research note on Thursday, August 13th. Raymond James Financial reissued a "strong-buy" rating and set a $51.00 price target on shares of GDS in a research report on Tuesday, September 1st. Wall Street Zen upgraded GDS from a "sell" rating to a "hold" rating in a research note on Sunday, September 6th. Finally, Zacks Research lowered shares of GDS from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $48.12.

GDS Stock Up 7.5%

The business's 50 day simple moving average is $32.06 and its 200-day simple moving average is $35.54. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.78 and a current ratio of 1.78. The company has a market cap of $6.31 billion, a price-to-earnings ratio of 14.69 and a beta of 0.42.

GDS (NASDAQ:GDS - Get Free Report) last posted its earnings results on Tuesday, June 30th. The company reported $0.52 earnings per share (EPS) for the quarter. GDS had a net margin of 30.70% and a return on equity of 17.94%. The firm had revenue of $454.51 million during the quarter. Sell-side analysts expect that GDS Holdings will post 2.23 earnings per share for the current year.

Hedge Funds Weigh In On GDS

Large investors have recently added to or reduced their stakes in the company. Nykredit A S acquired a new stake in shares of GDS during the 2nd quarter valued at about $63,000. Summit Securities Group LLC bought a new position in shares of GDS during the 1st quarter worth approximately $65,000. EverSource Wealth Advisors LLC boosted its stake in GDS by 73.5% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,160 shares of the company's stock valued at $87,000 after buying an additional 915 shares in the last quarter. SG Americas Securities LLC acquired a new stake in GDS in the 1st quarter valued at $132,000. Finally, PNC Financial Services Group Inc. grew its position in GDS by 8.4% in the first quarter. PNC Financial Services Group Inc. now owns 3,904 shares of the company's stock valued at $157,000 after acquiring an additional 303 shares during the period. Institutional investors and hedge funds own 33.71% of the company's stock.

About GDS

GDS Holdings Limited NASDAQ: GDS is a developer and operator of data centers. The company provides data center infrastructure and related services to cloud service providers, internet companies, financial institutions, telecommunications carriers and multinational corporations.

Its services include wholesale and retail colocation, managed data center services, interconnection and cloud connectivity. GDS designs, builds and operates facilities intended to support customers' critical information technology infrastructure, including cloud computing, data storage and other high-performance computing requirements.

Founded in 2001, GDS has historically focused on serving customers in China through data centers in major economic and technology centers.

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